Prophecy Emerges from Rainshadow
Released 30 October 2003
Listed software multinational Prophecy International is emerging
from the "Year 2000 rainshadow" with clear indications of
improved trading conditions in the technology market globally, reported
the company's CEO Alan Greig today.
"We are in a stronger position than in past years with new products
in clearly defined markets with considerable and demonstrable demand,"
Mr Greig told, at the company's AGM.
"There are indications that the market is finally emerging from
its Y2K rainshadow and we are well placed to take advantage of it.
During the first quarter, much of our focus has been on building a
sustainable pipeline for our products and the establishment of partners
for basis2 - with immediate success on both counts."
In 2002-03, Prophecy International experienced the difficult trading
conditions felt throughout the global IT Industry with reduced spending
across the board. While revenues in Australia remained at similar
levels to 2001-02, the challenging conditions in both the US and UK
resulted in 48 per cent reduction in sales revenue from overseas operations.
The company reduced its cost base dramatically in the second half
of the year by reducing headcount across the group while retaining
a presence in the key areas of US and Europe for the launch of its
During the year Prophecy continued to invest in the development of
Velatte, its flagship rapid application development environment for
the strongly emerging Java technology platform. This advanced technology
has enabled Prophecy to secure an AusIndustry R&D Start Grant
that subsidises the R&D cost at the rate of 50c for every $1 spent.
Consulting services continued to contribute strongly to revenue with
the delivery of major projects on time and within budget. Projects
included completion of the Emergency Services Levy project for SA
Government and development of Phase One of the Water Licensing project
for the Department of Water Licensing, Biodiversity and Conservation.
Phases Two and Three are due to be completed in 2003-04. The successful
delivery of these projects clearly testifies to the capabilities of
Prophecy's e-Foundation rapid application assembly product.
In March, Prophecy acquired basis2, a technologically advanced Customer
Information System (CIS) for the water and energy utility markets.
The company has mounted a focused marketing campaign to promote the
product in the US, UK and Asia Pacific. Leading US-based CIS industry
consulting group TMG Consulting, US has reviewed basis2 and states:
"basis2 is impressive in many ways, including its Oracle application
design, its email and bill presentation capability, and the flexibility
and strength of its billing engine
basis2 will make an exciting
impact in the CIS market."
Mr Greig said Prophecy's go-to-market plan for basis2 was through
key industry and technology partners. "We have already signed
partners in Australia, UK and Europe," he said. "basis2's
faithful use of Oracle's development technology provides a tight integration
with Oracle's e-Suite, a leading ERP software suite. The fact that
basis2 offers a CIS solution that is not covered by Oracle creates
significant interest with this major industry player.
"We believe 2003-04 will see Prophecy return to profitability,
positive cash flow and increased shareholder value. A quarterly review
completed this week supports this position."